Ontario’s Court of Appeal recently recognised a U.K. High Court’s initial order in a scheme of arrangement aimed at winding up the reinsurance business of Cavell Insurance Company Limited. It did so despite the fact that the U.K. court’s order did not meet the traditional requirement that only a final judgment of a foreign court for the payment of a definite sum of money will be enforced in Canada.

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In its January 10, 2006 decision in Egan v. Alcatel, the Ontario Court of Appeal awarded damages for both lost salary and lost disability benefits to an employee who became disabled three months after she was dismissed. In doing so, Ontario’s top court made it clear that an employer is obliged, not only to continue the salary paid to a dismissed employee during an appropriate notice period, but also to continue all employee benefits, including short and long-term disability benefits.

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Last summer, in David Polowin Real Estate Ltd. v. Dominion of Canada General Insurance Co., the Ontario Court of Appeal overturned its own decision on a question of law it decided just a few years ago in McNaughton Automotive Ltd. v. Co-operators General Insurance Co. In so doing, the Court wrestled with whether and when it could, or should, overrule one of its past decisions.

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An insured must inform its insurer of any facts that affect its insurability or that an insurer would consider relevant in assessing risk. This duty to disclose such facts exists even in the absence of a specific request for them. An insured may face coverage issues if it breaches this obligation and withholds facts that [...]

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